The anticipation surrounding the launch of spot Bitcoin exchange-traded funds (ETFs) may lead to initial disappointment among investors, with estimates suggesting only around $100 million in net inflows upon launch, primarily from institutional investors. However, VanEck adviser Gabor Gurbacs urges a broader perspective, emphasizing the long-term impact that these ETFs could have on the cryptocurrency sector.
Gurbacs draws parallels with the launch of gold ETFs in 2004, highlighting the eight-year period that saw the price of gold quadruple from $400 to $1,800. During this time, the total market cap of gold surged from $2 trillion to $10 trillion. Currently, Bitcoin’s market cap stands at $834 billion, approximately 41% of gold’s market capitalization in 2004.
Anticipating the approval of a spot Bitcoin ETF in the United States, Gurbacs envisions Bitcoin’s price trajectory mirroring that of gold, albeit at a much faster pace due to Bitcoin’s capped supply and scarcity-increasing events like halving.
In addition to potential price appreciation, Gurbacs underscores the crucial role a spot Bitcoin ETF plays in legitimizing and destigmatizing Bitcoin for institutional investors and nation-states. This shift in perception could pave the way for significant inflows into the cryptocurrency sector over time.
Bloomberg ETF analysts Eric Balchunas and James Seyffart echo Gurbacs’ sentiments, emphasizing the need to look beyond short-term data points. While some anticipate an immediate uptick in Bitcoin’s price upon ETF approval, others caution against a “sell the news” scenario.
Bitcoin’s current price of $42,525 reflects a 1.1% increase in the last 24 hours. As the market speculates on the potential outcomes, the long-term impact of a Bitcoin ETF approval remains a focal point for investors and analysts alike. Stay informed as we navigate the evolving landscape of cryptocurrency investments.
Source: Cointelegraph.com
